First Capital Bancorp, Inc. Reports Net Income of $641 thousand for
the Fourth Quarter 2012
GLEN ALLEN, Va., Feb. 1, 2013 /PRNewswire/ -- First Capital
Bancorp, Inc. (the "Company") (NASDAQ: FCVA) parent company to
First Capital Bank (the "Bank") reported today its financial
results for the fourth quarter of 2012. For the three months
ended December 31, 2012, the Company
had net income of $641 thousand and
net income available to common shareholders of $555 thousand, or $0.04 per diluted share, compared to net income
of $406 thousand and net income
available to common shareholders of $236
thousand, or $0.08 per diluted
share, for the same period in 2011.
Earnings
For the year ended December 31,
2012, the Company had a net loss of $6.0 million and net loss allocable to common
shareholders of $6.6 million, or
($0.76.) per diluted share, compared
to a net loss of $3.1 million and a
net loss allocable to common shareholders of $3.8 million, or ($1.26) per diluted share, for the same period in
2011.
The loss for 2012 was due primarily to the implementation of the
Asset Resolution Plan associated with the May 2012 Rights offering.
The improvement in quarter over quarter earnings resulted
primarily from the decrease in the provision for loan losses to
$165 thousand in the fourth quarter
of 2012 compared to $869 thousand in
the fourth quarter of 2011. Additional factors contributing
to our increase in net income during the fourth quarter of 2012 are
as follows. Net interest income improved to $4.2 million for the quarter compared to
$3.9 million in the fourth quarter of
2011, an increase of $331 thousand or
8.47%. Noninterest income was $634
thousand for the fourth quarter of 2012 compared to
$272 thousand (net of securities
gains) in the fourth quarter of 2011, an increase of $362 thousand or 133.09%, driven by the increase
in gain on sale of mortgage loans experienced in the fourth quarter
of 2012. Total noninterest expense was $3.7 million for the fourth quarter of 2012
compared to $3.2 million in the
fourth quarter of 2011, an increase of $452
thousand or 13.95%, primarily due to an increase in salaries
and employment benefits and a negative fourth quarter 2011 FDIC
accrual caused by the change in the calculation of the premium
base, offset by an improvement in losses on sales and write down of
other real estate owned.
The net interest margin was 3.46% for the quarter ended
December 31, 2012 compared to 3.19%
for the quarter ended December 31,
2011, a 27 basis point increase. This was a direct
result of the actions taken in the second quarter of 2012,
specifically the restructuring of FHLB advances, the reduction in
nonperforming assets and the increase in noninterest bearing
deposits.
Growth
At December 31, 2012 total assets
were $542.9 million compared to
$541.7 million at December 31, 2011, a $1.2
million or .23% increase from December 31, 2011. This increase was driven
primarily by the increase in loans, including loans held for sale,
net of the allowance of $16.5 million
or 4.55%, offset by the decrease in deposits in other banks of
$14.4 million or 35.04%.
Gross loans, excluding loans held for sale, at the end of the
fourth quarter of 2012 were $376.2
million compared to $370.2
million at December 31, 2011,
a $6.0 million or 1.63%
increase. The increase in loan balance was due primarily to
increased production resulting primarily from a new lending team
member hired in the middle of 2012.
Total deposits at the end of the fourth quarter grew
$18.9 million or 4.30% to
$459.1 million compared to
$440.2 million at December 31, 2011. Noninterest bearing
deposits increased $13.7 million or
29.45% to $60.1 million compared to
$46.4 million at December 31, 2011.
In a joint statement, First Capital Bancorp, Inc. CEO
John Presley and First Capital Bank
President and CEO, Bob Watts stated
"The second half of 2012 was a new beginning for the Company.
The results of the fourth quarter confirm our belief that a bright
future is ahead for the shareholders, customers and employees of
First Capital. We are encouraged by the underlying earnings
power of the Company and by the continuing improvement in our
credit metrics."
Asset Quality
The allowance for loan losses was $7.3
million or 1.93% of total loans for the period ended
December 31, 2012 compared to
$9.3 million or 2.51% of total loans
at December 31, 2011. The
decrease in the allowance for loan losses was primarily a result of
the chargeoffs associated with the implementation of the Asset
Resolution Plan executed in the second quarter of 2012. The
allowance for loan losses at the end of the second quarter of 2012
was $7.3 million or 1.97% of total
loans.
During the quarter ended December 31,
2012, the Company had charge-offs of $196 thousand, recoveries of $91.9 thousand and a provision for loan losses of
$165 thousand.
The following table reflects details related to asset quality
and the allowance for loan losses:
|
|
December
31,
|
|
2012
|
|
2011
|
|
(Dollars
in thousands)
|
Nonaccrual
loans
|
$8,014
|
|
$17,691
|
Loans past
due 90 days and accruing interest
|
1,338
|
|
-
|
Total
nonperforming loans
|
9,352
|
|
17,691
|
Other real
estate owned
|
3,770
|
|
7,646
|
Total
nonperforming assets
|
$13,122
|
|
$25,337
|
|
|
|
|
Allowance
for loan losses to period end loans
|
1.93%
|
|
2.51%
|
Nonperforming assets to total loans &
OREO
|
3.45%
|
|
6.71%
|
Nonperforming assets to total assets
|
2.42%
|
|
4.68%
|
Allowance
for loan losses to nonaccrual loans
|
90.70%
|
|
52.41%
|
|
|
|
|
|
Twelve
Months Ended
|
|
December
31,
|
|
2012
|
|
2011
|
Allowance
for loan losses
|
|
|
|
Beginning
balance
|
$9,271
|
|
$11,036
|
Provision
for loan losses
|
9,196
|
|
9,441
|
Net
charge-offs
|
11,198
|
|
11,206
|
Ending
balance
|
$7,269
|
|
$9,271
|
|
|
|
|
Subsequent to year end the company disposed of its largest
nonaccrual loan, reducing nonperforming assets by $1.5 million in January of 2013.
Capital
Total Risk Based Capital at December 31,
2012, was 13.75%, 375 basis points above the regulatory
minimum for well capitalized institutions. Tier One Risk
Based Capital at December 31, 2012,
was 12.29%. Additionally, tangible common equity increased to
7.67% at the end of the fourth quarter of 2012 compared to 5.54% at
December 31, 2011, due to the capital
raised in the rights offering and results of the aforementioned
activities.
The following table reflects the regulatory capital ratios of
the Company as of December 31, 2012
and December 31, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
Minimum To
Be Well
|
|
|
|
|
|
|
|
|
|
Minimum
|
|
Capitalized Under
|
|
|
|
|
|
|
|
|
|
Capital
|
|
Prompt
Corrective
|
|
|
|
|
|
Actual
|
|
Requirement
|
|
Action
Provision
|
|
|
|
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
|
|
|
|
(Dollars
in thousands)
|
As of
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
54,929
|
|
13.75%
|
|
$
31,955
|
|
8.00%
|
|
$
39,944
|
|
10.00%
|
|
Tier 1
capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
49,108
|
|
12.29%
|
|
$
15,978
|
|
4.00%
|
|
$
23,966
|
|
6.00%
|
|
Tier 1
capital to average adjusted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
49,108
|
|
9.19%
|
|
$
21,371
|
|
4.00%
|
|
$
26,714
|
|
5.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minimum To
Be Well
|
|
|
|
|
|
|
|
|
|
Minimum
|
|
Capitalized Under
|
|
|
|
|
|
|
|
|
|
Capital
|
|
Prompt
Corrective
|
|
|
|
|
|
Actual
|
|
Requirement
|
|
Action
Provision
|
|
|
|
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
|
|
|
|
(Dollars
in thousands)
|
As of
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
51,321
|
|
13.17%
|
|
$
31,179
|
|
8.00%
|
|
$
38,974
|
|
10.00%
|
|
Tier 1
capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
45,195
|
|
11.60%
|
|
$
15,589
|
|
4.00%
|
|
$
23,384
|
|
6.00%
|
|
Tier 1
capital to average adjusted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
$
45,195
|
|
8.37%
|
|
$
21,591
|
|
4.00%
|
|
$
26,989
|
|
5.00%
|
Non-Interest Income
Non-interest income, including gains on sales of securities,
totaled $634 thousand for the quarter
ended December 31, 2012 a decrease of
$73 thousand or 10.33% from
$707 thousand earned in the quarter
ended December 31, 2011. The
improvement in gains on sale of mortgage loans in 2012 were offset
by gains recognized on the sale of securities in 2011.
For the year ended December 31,
2012, non-interest income was $2.0
million compared to $2.1
million for the year ended December
31, 2011. The improvement in gains on sale of mortgage
loans in 2012 were offset by gains on the sale of securities in
2011.
Non-interest Expense
Non-interest expense totaled $3.7
million for the quarter ended December 31, 2012 which compares to $3.2 million for the quarter ended December 31, 2011, an increase of $452 thousand or 13.95%.
For the year ended December 31,
2012 noninterest expense was $18.4
million compared to $13.5
million for the year ended December
31, 2011. The increase resulted primarily from
prepayment penalties associated with the prepayment of FHLB
advances, write-downs of OREO in connection with the Asset
Resolution Plan, and personnel expenses.
The Bank currently operates seven branches in Innsbrook,
Chesterfield Towne Center, near Willow Lawn on Staples Mill Road,
in Ashland, at Three Chopt and
Patterson in Henrico County, at the James Center in
downtown, Richmond, and in
Bon Air, Chesterfield
County.
Readers are cautioned that this press release contains
forward-looking statements made pursuant to safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on management's current
knowledge, assumptions, and analyses, which it believes are
appropriate in the circumstances regarding future events, and may
address issues that involve significant risks including, but not
limited to: changes in interest rates; changes in accounting
principles, policies, or guidelines; significant changes in general
economic, competitive, and business conditions; significant changes
in or additions to laws and regulatory requirements; and
significant changes in securities markets. Additionally, such
aforementioned uncertainties, assumptions, and estimates, may cause
actual results to differ materially from the anticipated results or
other expectations expressed in the forward-looking
statements.
First Capital Bank…Where People Matter.
First
Capital Bancorp, Inc.
|
Financial
Highlights
|
(Dollars
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Selected Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
5,711
|
|
$
5,921
|
|
$
23,013
|
|
$
24,327
|
Interest
expense
|
|
1,470
|
|
2,010
|
|
6,674
|
|
8,379
|
Net
interest income
|
|
4,241
|
|
3,911
|
|
16,339
|
|
15,948
|
Provision
for loan losses
|
|
165
|
|
869
|
|
9,196
|
|
9,441
|
Other
noninterest income
|
634
|
|
272
|
|
1,903
|
|
1,001
|
Securities
gains
|
|
-
|
|
435
|
|
79
|
|
1,079
|
Noninterest expense
|
|
3,691
|
|
3,236
|
|
18,421
|
|
13,549
|
Income
(Loss) before income tax
|
1,019
|
|
513
|
|
(9,296)
|
|
(4,962)
|
Income tax
expense (benefit)
|
378
|
|
107
|
|
(3,290)
|
|
(1,886)
|
Net income
(loss)
|
|
$
641
|
|
$
406
|
|
$
(6,006)
|
|
$
(3,076)
|
Less:
Preferred dividends
|
$
86
|
|
$
170
|
|
$
623
|
|
$
679
|
Net income
(loss) available to common shareholders
|
$
555
|
|
$
236
|
|
$
(6,629)
|
|
$
(3,755)
|
Basic net
income (loss) per common share
|
$
0.05
|
|
$
0.08
|
|
$
(0.76)
|
|
$
(1.26)
|
Diluted
net income (loss) per common share
|
$
0.04
|
|
$
0.08
|
|
$
(0.76)
|
|
$
(1.26)
|
|
|
|
|
|
|
|
|
|
|
|
As of and
for the Three Months Ended
|
|
As of and
for the Twelve Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$542,947
|
|
$541,690
|
|
$542,947
|
|
$541,690
|
Loans,
net
|
|
368,919
|
|
360,969
|
|
368,919
|
|
360,969
|
Deposits
|
|
459,113
|
|
440,199
|
|
459,113
|
|
440,199
|
Borrowings
|
|
33,026
|
|
58,763
|
|
33,026
|
|
58,763
|
Stockholders' equity
|
|
47,088
|
|
40,683
|
|
47,088
|
|
40,683
|
Book value
per share
|
|
$3.49
|
|
$10.11
|
|
$3.49
|
|
$10.11
|
Tangible
Common Equity to Assets
|
7.67%
|
|
5.54%
|
|
7.67%
|
|
5.54%
|
Total
shares outstanding, in thousands
|
11,927
|
|
2,971
|
|
11,927
|
|
2,971
|
|
|
|
|
|
|
|
|
|
Asset
Quality Ratios
|
|
|
|
|
|
|
|
|
Allowance
for loan losses
|
$7,269
|
|
$9,271
|
|
$7,269
|
|
$9,271
|
Nonperforming assets
|
|
13,122
|
|
25,337
|
|
13,122
|
|
25,337
|
Net
charge-offs
|
|
104
|
|
623
|
|
11,198
|
|
11,206
|
Net
charge-off to average loans
|
0.03%
|
|
0.17%
|
|
2.97%
|
|
2.92%
|
Allowance
for loan losses to period end loans
|
1.93%
|
|
2.51%
|
|
1.93%
|
|
2.51%
|
Nonperforming assets to total loans &
OREO
|
3.45%
|
|
6.71%
|
|
3.45%
|
|
6.71%
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios:
|
|
|
|
|
|
|
|
Return on
average assets
|
0.48%
|
|
0.30%
|
|
-1.13%
|
|
-0.58%
|
Return on
average equity
|
5.43%
|
|
3.89%
|
|
-13.01%
|
|
-7.11%
|
Net
interest margin (tax equivalent basis)
|
3.46%
|
|
3.19%
|
|
3.39%
|
|
3.26%
|
|
|
|
|
|
|
|
|
|
SOURCE First Capital Bancorp, Inc.